New York, Feb 5, 2026, 13:14 EST — Regular session
- Hershey shares climbed roughly 8% in early afternoon trading following the company’s stronger-than-expected Q4 results and an upbeat 2026 forecast.
- The chocolate maker expects net sales to rise 4% to 5% by 2026, with adjusted EPS projected between $8.20 and $8.52.
- Investors are debating how fast Hershey can restore its margins amid ongoing pressure from cocoa costs and volume declines driven by pricing.
The Hershey Company’s stock jumped roughly 8% on Thursday, hitting about $222.61 in early afternoon trading. The confectionery giant topped fourth-quarter earnings estimates and unveiled a 2026 outlook that surpassed Wall Street forecasts.
Cocoa has become a sore spot for chocolate makers, with the market quick to punish any hint that rising prices are weighing on demand. Hershey’s guidance suggests demand is proving more resilient than some investors expected.
The stock’s surge stood in sharp contrast to a softer market. Around that time, the SPDR S&P 500 ETF was sliding roughly 0.7%.
Hershey posted a 7% jump in fourth-quarter net sales, hitting $3.091 billion, with adjusted earnings at $1.71 per share. Looking ahead to 2026, the company forecast reported net sales growth between 4% and 5%, and adjusted EPS ranging from $8.20 to $8.52. It also noted that acquisitions are expected to contribute roughly 150 basis points to sales growth. CEO Kirk Tanner expressed “strong conviction in the momentum of our business” in prepared remarks. (SEC)
Analysts had predicted adjusted earnings of $1.40 per share on quarterly sales totaling $2.98 billion, according to LSEG data referenced by Reuters. The same article noted Hershey’s prices climbed even as volumes dropped, indicating consumers are still absorbing higher prices despite buying less. RBC Capital Markets analyst Nik Modi cautioned that cocoa “remains fickle,” posing a threat to the margin rebound story. (Reuters)
Bulls are partly drawn to Hershey’s shift toward salty snacks, which have been outpacing growth in its traditional chocolate lines. This diversification offers a fresh revenue stream, especially useful when cocoa prices surge and chocolate costs climb.
Hershey’s outlook stood out amid a snack sector where peers have taken a more cautious tone. Mondelez shares nudged up slightly on Thursday, though investors remain wary about whether major snack companies can sustain price hikes without sharply cutting volume.
That said, a risk remains. The quarter highlighted how swiftly costs can pinch profits. The company is juggling price, promotions, and advertising to hold onto market share. Should cocoa prices stay unstable or consumers resist price hikes more strongly, the sales picture might tighten by midyear.
Investors now await further details from management on cocoa hedging strategies, pricing outlook, and how quickly margin improvements can continue. On another note, Hershey’s board announced a quarterly dividend, set for payment on March 16 to shareholders of record on Feb. 17. (Prnewswire)
